dear sir
I wish to purchase property worth of Rs.7500000/_ already given Rs. 500000/- advance bank loan is ready ie DD is ready for Rs.7000000/- in vendor name. but now we have to deduct 1% Tds as per IT act.
my query is how to show the tds in sale deed and should I recover from vendor
pl suggest as early as possible
Hi,
You may have a section in the sale deed mentioning the all relevant details such as total consideration, rate and amount of TDS, details of Form 16B, TDS certificate number, etc. Tax at the rate of 1% must be deducted either at the time of credit in the books of account or at the time of payment, whichever is earlier. In your case, the amount ofTDS to be deducted is INR 75,000 (75,00,000*1%). Therefore, the total consideration payable to the seller is INR 74,25,000 and not 75,00,000. The balance 75,000 has to be deposited by you to the credit of the govt.
For more details on procedure to submit Form 26QB, please refer to the "TDS on Sale of Property" on the Income-tax portal.
Best regards,
Megha
